Alaska Air Group provides passengers and cargo air transportation services primarily in the United States. The company operates through Alaska Mainline and Alaska Regional segments. The company was founded in 1932 and is based in Seattle, Washington.
ALK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ALK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Alaska Air Group Inc ranked in the 47th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2.5%. In terms of the factors that were most noteworthy in this DCF analysis for ALK, they are:
Alaska Air Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Industrials), Alaska Air Group Inc has a reliance on debt greater than 70.13% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ALK, try ETN, KAI, INSW, HSII, and BMI.
Come on, long-winded! Who craves industrials today? Aren't you the one, who keeps talking about Technology & Healthcare? So why are we discussing Industrials today? Okay. Hear me out. I must admit that I am a big fan of Technology and Healthcare as they are enjoying long-term secular tailwinds and...
The Long-winded on Seeking Alpha | September 25, 2020
Summary List Placement Goldman Sachs expects jet fuel demand to recover in 2021 alongside the potential availability of a COVID-19 vaccine in the second quarter. The bank's analysts said the number of airline passengers will return to pre-virus levels by 2023. "We do not believe that jet fuel demand has peaked and see jet as an area of long-term demand growth in this decade," analysts said in a note dated September 25. They suggested remaining selective on equities, and named domestic-exposed airlines including Southwest Airlines , JetBlue Airways , and Alaska Air Group as preferred stocks. Visit Business Insider's homepage for more stories . Goldman Sachs remains upbeat on the outlook for oil demand next year, thanks to an anticipated recovery in jet fuel consumption, particularly if a...
Seaport Global Securities starts off coverage on Alaska Air Group ([[ALK]] +0.9%) with a Buy rating on an early call for a recovery. "Network and cost restructuring that we estimate leave ALK ~20% smaller by summer 2021 are enough to drive a small full year profit that we estimate will...
The airline sector will see an eventual recovery in traffic, and investors should hold an attractive view of the industry, according to Morgan Stanley. The Airline Analyst: Ravi Shanker initiated coverage of the following airline stocks: Alaska Air Group, Inc. (NYSE: ALK ) at Equal-weight, $46 price target. Allegiant Travel Company (NASDAQ: ALGT ) at Overweight, $175 price target. Delta Air Lines, Inc. (NYSE: DAL ) at Overweight, $50 price target. JetBlue Airways Corporation (NASDAQ: JBLU ) at Overweight, $16 price target. Southwest Airlines Co (NYSE: LUV ) at Overweight, $54 price target. United Airlines Holdings Inc (NASDAQ: UAL ) at Underweight, $37 price target. Airlines In A Post-Coronavirus World: The COVID-19 pandemic has had an "unprecedented" impact on airlines, Shanker said in...